[ecis2016.org] Experts are hoping that key reforms, such as the goods and services tax, the Real Estate Bill, the Smart Cities and Housing For All initiatives, will boost the Indian realty market
Experts are hoping that key reforms, such as the GST, the Real Estate Bill, and the Housing For All initiative, will give a big push to the Indian realty market.
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Government initiatives that can boost sector
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Commenting on the future outlook for the sector, Vineet Relia, managing director of SARE Homes, says, “A series of structural and policy reforms have fostered positive sentiments among buyers, developers, as well as investors, and created an avenue for the sector to perform better. The Modi government’s promotion of 100 Smart Cities, AMRUT (Atal Mission for Rejuvenation and Urban Transformation), Housing For All by 2022, 24×7 power for all and infrastructure development, are some of the initiatives that will not only benefit the overall economy, but also have a positive effect on the sector. The government’s initiative on the Real Estate Bill, notwithstanding reservations by various parties, if implemented, will provide a structural reform and enable single-window clearance for the sector.”
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Experts believe that the Smart Cities mission will be watched keenly in 2016 and a successful implementation of each step, will fuel positive sentiment in the market. Clearance of the Real Estate (Regulation and Development) Bill, will help genuine developers and discourage unscrupulous builders and thereby, boost the consumers’ confidence in the sector.
Taxation and funding
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“With respect to taxation, the much awaited and debated GST will bring in a new era of uniform taxation. We are hopeful that it will eliminate the current multiple tax structure, which does not serve the interest of developers or home buyers in any way,” maintains Kishore Bhatija, managing director – real estate development, K Raheja Corp. “The easing of foreign direct investment (FDI) norms, will help attract much-needed funds into the sector. The industry will be better equipped to complete projects quickly and this will eventually help in lowering the cost for consumers. The easing of FDI norms will also speed up the process of investment and repatriation and attract larger investments into the Indian real estate market. Moreover, if the RBI announces further rate cuts, the industry can look forward to a growing demand for housing in 2016, on the back of lower interest rates and positive buyer sentiments,” he elaborates.
Make in India
Experts also believe that the government’s ‘Make in India’ program and the development of dedicated freight corridors, can foster growth in key industries. “End-user-driven markets across the country are expected to hold steady,” predicts Anita Arjundas, MD and CEO, Mahindra Lifespaces. “In the mid to long term, the real estate and infrastructure development sectors can derive indirect but significant benefits, from pro-growth initiatives launched by the government. These can provide a fillip to India’s urban areas, which are potentially key drivers of high economic growth,” she concludes.
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